Contrasting Service Team (OTCMKTS:SVTE) & Custom Truck One Source (NYSE:CTOS)

Service Team (OTCMKTS:SVTE) and Custom Truck One Source (NYSE:CTOS) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Institutional and Insider Ownership

90.1% of Custom Truck One Source shares are held by institutional investors. 0.0% of Service Team shares are held by company insiders. Comparatively, 4.7% of Custom Truck One Source shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Service Team has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500. Comparatively, Custom Truck One Source has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Earnings and Valuation

This table compares Service Team and Custom Truck One Source”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Service Team	N/A	N/A	N/A	N/A	N/A
Custom Truck One Source	$1.98 billion	1.05	-$31.05 million	($0.09)	-102.50

Service Team has higher earnings, but lower revenue than Custom Truck One Source.

Profitability

This table compares Service Team and Custom Truck One Source’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Service Team	N/A	N/A	N/A
Custom Truck One Source	-0.88%	-2.18%	-0.49%

Analyst Recommendations

This is a summary of recent ratings and target prices for Service Team and Custom Truck One Source, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Service Team	0	0	0	0	0.00
Custom Truck One Source	2	1	4	0	2.29

Custom Truck One Source has a consensus target price of $9.33, suggesting a potential upside of 1.17%. Given Custom Truck One Source’s stronger consensus rating and higher possible upside, analysts plainly believe Custom Truck One Source is more favorable than Service Team.

Summary

Custom Truck One Source beats Service Team on 7 of the 10 factors compared between the two stocks.

About Service Team

Service Team Inc. manufactures, maintains, and repairs truck bodies in the United States. It manufactures truck bodies that are attached to a truck chassis; and other products used by the trucking industry. The vans are available for hauling dry freight or refrigerated freight. It serves auto dealers and users of trucks, such as dairies, food distributors, and local delivery. The company was founded in 2011 and is based in Villa Park, California.

About Custom Truck One Source

Custom Truck One Source, Inc. provides specialty equipment rental and sale services to the electric utility transmission and distribution, telecommunications, rail, forestry, waste management, and other infrastructure-related industries in the United States and Canada. The company operates through three segments: Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS). The ERS segment owns new and used specialty equipment, including truck-mounted aerial lifts, cranes, service trucks, dump trucks, trailers, digger derricks, and other machinery and equipment. The TES segment offers new equipment for sale to be used for end-markets, which can be modified to meet customers specific needs. The APS segment provides truck and equipment maintenance and repair services; and rents and sells specialized tools, including stringing blocks, insulated hot stick, and rigging equipment, as well as sale of specialized aftermarket parts. The company was formerly known as Nesco Holdings, Inc. and changed its name to Custom Truck One Source, Inc. in April 2021. Custom Truck One Source, Inc. was founded in 1988 and is headquartered in Kansas City, Missouri.